Real Estate and Property

A Real Estate and Property Management Merchant Account is a specialized business bank account that allows real estate and property management companies to accept credit cards, debit cards, and other electronic payments from tenants or clients. Think of it as the financial bridge between your tenant’s payment and your business’s bank account – it securely moves funds from their card or bank into your business’s hands.

This type of merchant account is tailored to handle property management transactions every day, such as monthly rent payments, security deposits, leasing fees, and maintenance charges.

For real estate professionals, having a merchant account opens up a world of convenient payment options beyond the old-fashioned cash or paper checks. It enables you to accept payments online through a website or tenant portal, over the phone via a virtual terminal, and even on the go using mobile card readers or payment apps.

By offering modern payment methods, you make paying easier for tenants and clients. That means fewer late payments, less chasing down checks, and a more seamless experience for everyone involved. In today’s fast-paced, digital world, the ability to process electronic payments is essential for enhancing client convenience and broadening your customer reach.

Real estate and property management businesses often need

Services like PayPal and Stripe are popular for many small businesses, but real estate and property management companies often face roadblocks with these platforms. The reason is that general-payment providers have strict risk criteria and maintain lists of businesses they consider higher risk. Unfortunately, property management often falls into that category in their eyes. Real estate transactions can involve huge payments (think an entire month’s rent or a hefty deposit), higher transaction volumes around rent due dates, and occasionally disputes or chargebacks from tenants. From the perspective of a platform like PayPal or Stripe, these factors can raise red flags.

What does this mean for you if you try to use a standard payment service? You might experience inconvenient disruptions like sudden account freezes, transaction declines, or even withheld funds.

For example, collecting $2,000 in rent via a peer-to-peer payment app could trigger an automatic review or freeze because the platform isn’t expecting such large transactions from a typical user. The last thing you need is your funds locked up or your account suspended just when you’re trying to pay property owners or cover maintenance bills. These services are designed for low-risk, small-scale transactions and often aren’t equipped to handle the needs of a property management business, especially without warning.

This is why many savvy property managers turn to dedicated merchant service providers (like Host Merchant Services) that understand their industry. With a real estate merchant account from a specialized provider, you get a system built to handle those larger payments and industry nuances, ensuring your transactions are processed smoothly and reliably every month.

In the payment processing world, merchant accounts are often categorized as “low-risk” or “high-risk,” depending on the nature of the business. Understanding this difference is important because it affects which providers will work with you and what terms they’ll offer. Low-risk industries are businesses that banks and processors view as having a stable, predictable transaction profile.

These typically include family restaurants, retail shops, or grocery stores. Such businesses usually have relatively smaller transaction sizes, low chargeback rates, and straightforward services or products. As a result, they are easy to underwrite and support—almost any payment processor will happily serve a low-risk business, often with quick approvals and lower fees.

On the other hand, high-risk industries include businesses that deal with larger dollar amounts, higher chargeback ratios, subscription billing, or certain regulated goods and services. Examples might be travel agencies, online gambling sites, adult entertainment, telemarketing, or tech support services. These industries historically see more customer disputes or fraudulent transactions, or they operate in areas with legal and regulatory complexities.

Payment processors label them "high-risk" because there’s a greater chance something could go wrong – for instance, a surge of chargebacks that could cost the processor money. High-risk merchants often face stricter account requirements, reserves (where the processor holds a percentage of your funds as a security), higher processing fees, and fewer processors willing to work with them.

It might surprise you, but many banks and processors have traditionally lumped property management into high-risk categories. This is mainly due to the factors we discussed: card-not-present transactions (e.g., taking payments online or by phone), the potential for tenant disputes, and significant rent or deposit payments. From a generic risk standpoint, those characteristics do raise caution flags. However, at Host Merchant Services, we view real estate and property management a bit differently. We have much experience with high-risk industries (like some examples above). In comparison, property management businesses can be very stable and predictable partners.

Why would we consider real estate and property management more manageable regarding risk? For one, rental income is often recurring – tenants pay the same amount every month, and long-term leases provide some predictability. Property management companies also deal with tangible assets (homes, offices, apartments), and there is inherent value in those assets, which adds legitimacy to the transactions.

In our eyes, a property management firm that is well-run, with proper leases and documentation, isn’t akin to a fly-by-night operation at all. It’s a professional service managing real property, which is a far cry from an offshore gambling website with anonymous one-off customers. Because of this perspective, Host Merchant Services is comfortable treating many real estate and property management businesses almost like low-risk merchants (in terms of our willingness to support them and offer competitive terms). We still implement all the necessary fraud and chargeback precautions, but we don’t automatically shut the door on you because your transactions are large or you take payments over the phone.

Even though we at Host Merchant Services have a nuanced view of property management risk, it’s essential to understand why many merchant service providers slap a “high-risk” label on this industry in the first place. Here are the main factors that make banks and payment processors cautious about real estate and property management businesses:

• Card-Not-Present Payments: Property managers often accept payments via methods where the card isn’t physically present – for example, taking a credit card number over the phone or allowing tenants to pay through an online portal (a virtual terminal). These scenarios are riskier to traditional banks because neither the card nor the customer is in front of you to verify identity. The lack of a physical card swipe or chip insert means a higher chance of fraud (like stolen card numbers being used), so processors naturally approach these transactions more cautiously.
• Potential for Chargebacks: In property management, disputes can arise occasionally. A tenant might disagree with a cleaning fee, argue about damage charges, or withhold rent due to a maintenance issue. In some cases, rather than resolving it directly, the tenant might call their credit card company and dispute the charge. Chargebacks are these reversed charges, and a high rate of chargebacks is a big red flag for payment processors. Real estate services can see moderate chargeback levels due to the occasional contentious nature of landlord-tenant relationships. Each chargeback reverses the payment, incurs fees, and hurts the business’s credibility with processors.
• Large Transaction Sizes: Rent and property-related payments are much larger than your average retail purchase. A single transaction could be $1,000, $2,000, or more, especially for commercial rent or multi-month lease payments. From a risk perspective, more significant transactions mean more considerable losses if something fraudulent occurs or if multiple chargebacks happen. It’s a volume of money that is inherently more risky to move. Traditional processors sometimes fear that if they approve a merchant who runs large payments and a bunch of those payments get disputed; they could be left holding the bag for a lot of money.

Due to perceived risks, many merchant account providers avoid working with property management companies. If you've faced rejection from banks or had accounts closed, consider working with a provider like Host Merchant Services, specializing in high-risk or challenging merchant accounts.

Our accounts are designed specifically for industries like real estate and property management. We offer robust fraud detection and chargeback prevention tools to help you manage transactions smoothly and maintain a stable, long-term processing solution. This lets you focus on managing properties and serving your clients without worrying about payment processing issues.

Merchant accounts designed specifically for real estate and property management offer a range of benefits that can significantly improve your business’s operations and financial management. Here’s what you gain by choosing Host Merchant Services for your property management payment processing:

• Automated, Efficient Rent Collection: Using a Host Merchant Services merchant account, you can automate rent collection by setting up recurring billing for monthly rent or HOA dues. This saves time and minimizes the chances of missed or late payments, ensuring a more predictable cash flow.
• Robust Security and Compliance: Our services offer robust security measures, including built-in fraud prevention tools and compliance with PCI DSS standards to protect sensitive payment information and prevent data breaches and fraud. This is crucial in handling large transactions in property management.
• Cost Savings on Processing Fees: Host Merchant Services provides cost-effective processing options like interchange-plus pricing, which can significantly reduce processing fees on high-ticket transactions such as rent payments. This can lead to considerable annual savings, allowing you to reinvest in your business or provide better value to property owners.
• Multiple Payment Channels for Convenience: We also support multiple payment channels, including credit and debit cards, ACH transfers, and contactless and mobile payments. Tenants can pay through various methods, such as online portals or in-person, enhancing convenience and improving payment timeliness.
• Faster Payments, Better Cash Flow: Digital payments accelerate the payment process, with funds typically deposited by the next business day. This improves cash flow and eliminates issues associated with paper checks, such as delays and the risk of bouncing. Faster payments mean tenants receive immediate confirmation of their transactions, and you get quicker access to funds.

Host Merchant Services is proud to support a broad range of businesses in the real estate sector. Our real estate and property management merchant accounts cater to (but are not limited to) the following types of businesses and organizations:

• Apartment Rentals & Management – Companies or independent landlords managing apartment buildings and multifamily housing communities.
• Commercial Property Management – Managing offices, retail centers, warehouses, and other commercial rental properties.
• Homeowner & Condo Association (HOA) Management – Collecting dues and handling finances for residential communities and condominium complexes.
• Real Estate Brokerages with Property Management Services – Real estate firms that also offer property management for client investments
• Vacation Rentals and Short-Term Rental Management – Managing short-term rental properties, vacation homes, or Airbnb portfolios on behalf of owners.
• Property Maintenance & Services – Businesses that provide property maintenance, repairs, and upkeep services (often billing property owners or managers).
• Real Estate Investment Trusts (REITs) – Organizations managing real estate investment portfolios that require handling investor funds and property income.
• Industrial Property Rentals – Managing leases for industrial spaces, factories, or specialized commercial properties.
• Land Sales and Development – Companies that buy, sell, or develop land must process large transactions or down payments.
• Senior Living Facility Management – Operating and managing payments for assisted living facilities, retirement communities, and similar housing.
• Real Estate Appraisal Services – Professionals who may need to accept credit card payments for appraisal fees.
• Housing Cooperative Management – Managing co-op housing finances, member payments, and maintenance funds.
• Corporate Housing Providers – Businesses that manage furnished apartments or homes for corporate clients on short-term assignments.
• Retail Space Leasing – Companies that lease out storefronts or mall spaces must collect rent and fees from retail tenants.
• Real Estate Development Firms – Developers who may take payments for lot reservations, custom builds, or related services.

Don’t worry if your particular niche isn’t explicitly listed. If your business involves real estate transactions or property management services, chances are we can provide you with a merchant account solution. Host Merchant Services has the expertise to work with nearly any business model in the real estate sector, crafting a payment processing setup that fits your needs.

Getting started with Host Merchant Services is straightforward. To set up your merchant account for real estate or property management, you must provide a few standard documents and information during the application process. Having these ready will make the approval process quicker and smoother:

• Voided Check: A voided check from the bank account where you want your funds deposited. This is used to verify the account details for deposit.
• Bank Account Confirmation: Proof of an active business account (or personal account if you operate as a sole proprietor). A bank statement or letter from the bank in your business’s name usually suffices.
• EIN or Business Tax ID: Your business’s Employer Identification Number (EIN) or equivalent business registration number. This identifies your company for underwriting and credit purposes.
• Previous Processing History: If you have an existing merchant account or have processed credit card payments, you may be asked for recent processing statements. This helps underwriters assess risk by allowing them to see your typical transaction volumes.
• Recent Bank Statements: Typically, bank statements for the last three months are required. These show your business's financial health and help verify that you can handle the funds flowing in and out.
• Website or Marketing Materials: A fully compliant business website is often needed, especially for high-risk underwriting. Your website should clearly describe your services (e.g., property management, rental listings), include contact information, and outline terms and conditions or policies. This demonstrates transparency and legitimacy.
• Chargeback History: Information about any past chargebacks or disputes, if applicable. If you’ve had a prior merchant account, documentation of chargeback ratios or resolved issues will be helpful. This isn’t always required, but it’s good to have if relevant.

The more complete and accurate information you provide, the easier for us to approve your account quickly. By having these documents ready, you help our underwriting team get a clear picture of your business, which means we can set up your merchant account and get you processing payments in no time. Don’t worry – our Host Merchant Services team will guide you through each requirement and answer any questions during the application. We’re here to make the setup process as smooth and fast as possible so you can start accepting payments confidently.

With so many merchant service providers, you might wonder what makes Host Merchant Services stand out – especially for real estate and property management professionals. Here are a few reasons Host Merchant Services is a trusted partner for merchants nationwide, including those that other processors might consider “high risk”:

• Host Merchant Services welcomes businesses from high-risk industries, like real estate and property management. We specialize in securing merchant accounts for businesses struggling to find reliable payment processing due to their unique needs or large transaction volumes.
• Our tailored merchant solutions are crafted to meet the specific demands of your industry. Whether you manage residential rentals, vacation properties, or commercial spaces, we understand your business dynamics and align you with the best banking partners to ensure a perfect fit from the start.
• We've built strong relationships with multiple acquiring banks and processing networks, allowing us to place accounts that may be considered challenging elsewhere effectively. Our approach avoids common issues like account freezes or unexpected holds by ensuring banks understand your business model thoroughly before processing begins.
• Our commitment to stable, long-term processing relationships means we set you up for sustained success, helping you avoid the instability often associated with high-risk processing. Thanks to our proactive placement strategy, many of our clients have enjoyed years of consistent service.
• Choosing Host Merchant Services means gaining a partner committed to your success. Our top-rated customer support team is always ready to assist, whether you need help with a transaction or integrating payment systems. Our proactive, knowledgeable support ensures that any concerns are addressed swiftly and effectively, allowing you to focus on running your business.